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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (48903)	2/12/2000 1:00:00 PM
From: Ken Benes	Read Replies (2) \| Respond to of 116764

We are approaching a very interesting point in the gold market. I believe there exists significant pressure for gold to approach the 350.00 level, however, I do expect some impediments to surface. I do not believe we have heard the last from the central banks/bullion banks. Regardless of the current large short position, the bankers do have enormous resources at their disposal that could effect the price of gold in a negative way. Also, I still have concerns about the producers and I would hope that they would be able to curtail their enthusiasim to increase production. It is still too early in the price recovery of gold to add new supplies. Current deficits between supply and demand will be met to an extent by those who purchased gold between 250 and 280 and sell into a rising market. I also expect demand the drop off a bit until buyers recognize that gold will stabilize above the 330 ounce level. The producers adding supply can undermine this adjustment phase and could set up the next scenario for them to begin forward selling to cover expenses associated with bringing new production on line. As we have witnessed the past several years, the managers of the senior golds are not the most sophisticated people around, and they are going to have to become more prudent in their managerial efforts for gold to achieve a realistic equilibrium price. Once equilibrium is released they are going to have adjust their output levels to monitor demand, and future forward selling must be kept within the norms of other commodity based companies, protect production within the year you are operating and unlike other commodities do not artifically increase supply thru a leasing/forward sales program. The big question can they discipline themselves. Ken